We have focused on mining Bitcoins, but what should you do with the money you earn from it? Should you withdraw it every month into South African Rand or American Dollar, or should you wait some time without withdrawing?
The answer, it seems, depends on your wants and needs, and also which currency you’re mining. With that in mind, here’s our guide with what to do if you’re mining Bitcoin.
Should I convert Bitcoins into Cash straightaway after the 4.5 month waiting period?
The first thing you need to do is join an exchange. An exchange lets users buy and sell Crypto Currency. Exchanges are often closed to new registrations, so try and get one set up as soon as possible, once you’ve mined enough Bitcoins.
Now the question is, should you withdraw straight away? There’s no easy answer to it, while Bitcoin has continued to rise, it may one day start falling. However, going by trends, and the fact that many people see that day as years away, it’s best to not withdraw any money that you don’t need. The value of your country’s currency will never rise as fast as that of Bitcoins.
Should I convert Bitcoins into other Alternative Currencies that are rising faster?
This is a very pertinent question. Assuming you have Bitcoins and intend to keep them for a long period, it might prove to be far better to shift them to newer Altcoins that rise at a far higher rate. However, this is not something to do lightly. Altcoins are notoriously volatile and buying and selling at the wrong time can be a huge problem.
You should set aside a small portion of your crypto currency to speculate and invest in, until you get more and more confident with the market. Even moving your currency into Ethereum or Litecoin might be a better idea because they are better currencies than Bitcoins at rising values. However, the one thing to keep in mind is that it’s best to keep the majority of your currency in the much safer Bitcoin, than in dangerous Altcoins that can fall steeply in value and leave you well out of pocket. It’s a difficult decision to make, and this is why trading is so risky, and why mining is far better than trading. However, trading, when used correctly can make mining even more worthwhile, by increasing the value of your portfolio.
Every few months the value of Bitcoins suddenly drops steeply after some negative press. The key is to never panic and sell your Bitcoins as this is a low and you will lose a lot of money when Bitcoins rise again. Have some confidence in the product, and never sell when Low, whether it be Bitcoins, Ethereum or even Altcoins, unless you are sure the fall is irreversible.
You can make a lot of money by trading smartly the money that you have mined. Don’t miss out on this opportunity.